The government has approved a new scheme to speed up the expansion of domestic Piped Natural Gas (PNG) connections across India.
The new Incentive Scheme for Promotion of Domestic PNG Connections will come into effect from September 1, 2026.
The main aim of the scheme is to help more households get access to affordable and convenient cooking gas through pipelines instead of LPG cylinders.
At present, India has around 17.4 million domestic PNG connections, and the government wants this number to grow much faster.
CGD Companies Will Get Cheaper Gas
Under the new scheme, City Gas Distribution (CGD) companies will receive 200 standard cubic meters (SCM) of low-cost domestically produced APM gas for every new domestic PNG connection that becomes active and starts billing, subject to the scheme’s limits.
This cheaper gas will reduce the companies’ dependence on expensive imported LNG, helping lower their overall costs.
The government believes this could reduce the time needed for companies to recover their investment from around 10 years to just 3 years.
The scheme will be rolled out in two phases over six months, encouraging companies to expand their PNG networks faster.
What Does This Mean for Customers?
The biggest benefit for customers could be lower installation costs. Since companies will spend less on gas, they may reduce the initial connection charges or security deposits for new PNG users.
The scheme will also encourage companies to activate connections that were left unused after pipelines had already been installed, allowing more homes to start using PNG without unnecessary delays.
PNG is delivered directly to homes through pipelines, so customers do not have to book, store, or replace LPG cylinders.
Instead, they receive a bill based on the amount of gas they actually use, making it a more convenient option for everyday cooking.
